Total inventory carrying costs are variable costs that depend upon the average number of units stocked ,the cost per unit ,and _____.
A)TC,total inventory costs
B)Q,the number of units per order
C) ,the number of orders placed
D)applicable carrying cost interest rate

Question

Total inventory carrying costs are variable costs that depend upon the average number of units stocked  ,the cost per unit  ,and _____.
A)TC,total inventory costs 
B)Q,the number of units per order 
C) ,the number of orders placed 
D)applicable carrying cost interest rate

Quizplus · Accepted Answer

Total inventory carrying costs include the costs of holding inventory, such as storage, maintenance, and insurance, as well as the opportunity cost of tying up capital in inventory. The applicable carrying cost interest rate is important because it represents the cost of financing the inventory investment. Therefore, D is the best choice.

Total Inventory Carrying Costs Are Variable Costs That Depend Upon